Elite Tooling raises funds for new manufacturing range
Published: 22nd April 2003
Bob Hill from Elite Tooling producing machine tools, being watched by (from left) Mentor Simon Lamb, Allan Wood, Investment Manager who led the deal and Jonathon Dixon, Mentorbank Manager from SYIF.
South Yorkshire Investment Fund has backed Rotherham engineering firm Elite Tooling Ltd as it moves to develop and manufacture its own range of machine tools.
The £40,000 loan will be used by Elite to create a new range of specialist tools and transform itself from a distributor to a manufacturer.
Formed in 1996 by directors Bob Hill and Lyndsay Butterfield, the company is now expected to expect to turn out more than 12,000 tools a year.
The business first started out as an importer and wholesaler of tools but the loan has enabled them to buy specialist equipment and computer software to develop their own range of tools - to be supplied to independent
Mr Hill said: "The loan was absolutely crucial to our plans to launch a manufacturing element to the company. Without it we physically could not have done it. We are very positive about future growth and the additional
financial support has put the company in a solid and secure condition.
"We will also be able to offer a good service to local businesses including a regrinding service - for drills, taps and milling cutters. But in the longer term we are hoping to export our goods to Europe - there are tremendous opportunities within the eastern block countries.
Helped by Nicholas Moate - from Business Link South Yorkshire - the company has also signed up to South Yorkshire Investment Fund’s Mentorbank initiative, which provides subsidised mentoring support to help management teams grow the business more profitably.
Mr Hill added: " We were more than happy to sign up to the Mentorbank project - Money with Management. Having somebody with experience will be a great asset to the company.
"We are delighted that Simon Lamb has joined us as the official mentor from SYIF. His experience of the export trade and of marketing will be a huge benefit to our company."
Tony Goulbourn, Chief Executive of South Yorkshire Investment Fund Ltd, said: "We are delighted to be able to help small businesses such as Elite Tooling. It is also good to encourage manufacturing in the area and this
latest initiative by Mr Hill and his team should be commended."
The Fund provides development and risk capital ranging from £15k to £1m to businesses in, or prepared to relocate to, South Yorkshire.
It offers two key products, one of which is loans ranging from £15k to £150k with effective annual interest rates from as little as 3% per annum.
The second product is an equity-linked package, ranging from £50k to £1m where the Fund takes a minority stake in the business.
The equity-linked package, with its competitive fees, is designed for new or existing businesses with potential for rapid expansion. Investments can be made as a mix of ordinary and preference shares or subordinated loan stock.
The Fund’s products are designed to support businesses through critical stages of growth. From start through to major expansion, the fund will provide financial support. If a business is looking to start up, invest in
new technology or equipment, enter new markets or locate into South Yorkshire it should call South Yorkshire Investment Fund first.
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About South Yorkshire Investment Fund
South Yorkshire Investment Fund provided seedcorn, loan and equity linked investments, ranging from £15k to £2.5m, specifically to help small and medium businesses meet the gaps in funding they need for growth and development.
Created as part of the Objective 1 programme, the Fund is a private and public sector business finance provider. The European Regional Development Fund and Yorkshire Forward are investors in the Fund.
South Yorkshire Investment Fund also provided access to Business Angel investments from the Yorkshire Association of Business Angels and Microloans through BiG Business Loan Fund and Donbac Microloan Fund.
Finance Yorkshire has now taken on responsibility for providing gap finance in Yorkshire and the Humber.
For further details please contact Suzanne Tinkler, on 0845 649 0000.
South Yorkshire Investment Fund Ltd is a company limited by guarantee (Registered No 3936065). South Yorkshire Investment Fund comprises three sub funds, the South Yorkshire Investment Capital Fund, the South Yorkshire Investment Development Fund, which are each managed by YFM Venture Finance Limited, and the South Yorkshire Investment Small Business Fund, which is managed by Finance South Yorkshire Ltd. YFM Venture Finance Limited (Tel 0113 294 5000) and Finance South Yorkshire Ltd (Tel 01709 386 377) are each authorised and regulated by the Financial Services Authority. South Yorkshire Investment Fund also provides a number of services, which are not regulated by The Financial Services Authority. These include the pilot Seedcorn Fund, BiG Business Loan Fund, Mentorbank and access to the Donbac Microloan Fund. BiG Business Loan Fund is managed by Donbac Ltd (company registration No. 01925556) and Key Fund Yorkshire Ltd (Tel 0114 242 8900).